FXstreet.com (San Francisco) - After closing below a key 38.2% Fibonacci retracement level at 1.2590 for the first time 13 months, and after closing below the 50-month EMA (1.2605) for the first time since October 2008, the AUD/NZD pair has started the week with a 15-pip downside gap below the 1.2500 mark at 1.2496, a price not seen since Sep 28, 2011.
Last week’s extension lower finally broke below an ascending trend line around 1.2550 (troughs: Oct 6, 2009/July 14, 2010), which had been tested on a few separate occasions back in April 2012, September 2011 and August 2011.
Last quoted in the 1.2500 price zone, if the pair continues its current downward trajectory in October, AUD/NZD may hold scope for a test of support at 1.2210 (50%, Fibo, 1.0634/1.3791 advance). However, price must first break below the 1.2315 support zone (Aug 2011 low); further support is noted at 1.2165 (100-month EMA). If bulls lift AUD/NZD to levels back above the mentioned trend line, resistance is noted at 1.2530 (April 9 low), 1.2570 (Sep 24 low) and 1.2610 (March 30 low).
Last week’s extension lower finally broke below an ascending trend line around 1.2550 (troughs: Oct 6, 2009/July 14, 2010), which had been tested on a few separate occasions back in April 2012, September 2011 and August 2011.
Last quoted in the 1.2500 price zone, if the pair continues its current downward trajectory in October, AUD/NZD may hold scope for a test of support at 1.2210 (50%, Fibo, 1.0634/1.3791 advance). However, price must first break below the 1.2315 support zone (Aug 2011 low); further support is noted at 1.2165 (100-month EMA). If bulls lift AUD/NZD to levels back above the mentioned trend line, resistance is noted at 1.2530 (April 9 low), 1.2570 (Sep 24 low) and 1.2610 (March 30 low).
